Real Estate without the hassles of tenants, toilets, and trash has absolutely changed our lives - having dumped over 100 houses and over 400 apartments in favor of Self-Storage and Warehouses. 

I would favor investing some money in securities to provide diversification.  

Im just looking for more motion.  

You'd likely be able to get ~70% LTV but since this would be an asset based loan the interest rate would be quite favorable (especially compared to hard money). 

The bank can then resume the foreclosure or they can file a motion to start sooner. 

They are doing me a favor when I use their money and I am returning the favor by providing a desired return on that money.

Here are a few details:Money in motion: up over 15% from 2014 to $1,222,889,198.Sales counts: up 4.55% from 2014 to 4706.Average price: up 10.35% from 2014 to $259,857Median price: up 10.77% from 2014 to $180,000.Our market is rockin!

I've really thought about doing that as other areas around the country seem much more desirable and the "numbers" seem to work in my favor as I am a new investor to real estate who may not have much capital compared to others who have been in the game longer.

The favorable financing available to an owner occupant.

By leaving the arrears in the rent side of things, I would think that he is doing you a favor, guaranteeing that you can collect all the fees.